Credit Vocab

Adjustable-Rate Mortgage

• A home loan with an interest rate that can vary

• A loan with a fixed interest rate

• A loan with a variable repayment schedule

• A loan with a fixed repayment schedule

Annual Percentage Rate (APR)

• Home loan with an interest rate that stays the same

• The cost you pay each year to borrow money, in a percentage

• A home loan with an interest rate that can vary

•  The maximum amount of credit that a person can borrow

Credit Card

• The maximum amount of credit that a person can borrow

• A numerical rating calculated on someone’s ability to pay back the money they borrowed

• A card that allows a person to pay for things on credit

• Home loan

Credit Limit

• Unfair and sneaky tactics some use to trick people into taking out loans

• The amount of money owed on an account

• The smallest amount you can pay back each month on a loan or credit card

• The maximum amount of credit that a person can borrow

Credit Score

• A numerical rating calculated on someone’s ability to pay back the money they borrowed

• A card that allows a person to pay for things on credit

• A sum of money that is borrowed

• The amount of money you originally agreed to pay back on a loan

Debt

• A sum of money that is borrowed

• Money that is owed

• The amount of money you originally agreed to pay back on a loan

• The maximum amount of credit that a person can borrow

Fixed-Rate Mortgage

• A home loan with an interest rate that can vary

• The amount of money owed on an account

• Home loan with an interest rate that stays the same

• The price one pays to borrow money

Interest

• Part of a loan that is charged as interest, in the form of a percentage

• The amount of money you originally agreed to pay back on a loan

• A card that allows a person to pay for things on credit

• The price one pays to borrow money

Interest Rate

• The cost you pay each year to borrow money, in a percentage

• The price one pays to borrow money

• The amount of money owed on an account

• Part of a loan that is charged as interest, in the form of a percentage

Loan

• Money that is owed

• A sum of money that is borrowed

• The smallest amount you can pay back each month on a loan or credit card

• A home loan with an interest rate that can vary